India Dec. Services PMI At 15-Month High

Sponsored Links

India's services sector expanded to fifteen-month high in December, a report from the Markit Economics and HSBC showed on Wednesday.

The seasonally adjusted HSBC services purchasing managers' index or PMI increased to 57.4 in December from 55.2 in the previous month. This was the highest reading since September 2008. A reading above 50 indicates expansion in the sector and below 50 suggests contraction.

Manufacturing and services sectors output climbed the fastest rate since September 2008, while new orders at manufacturers increased for fifteen months high and at a faster than the service providers.

In December, average services costs increased for the ninth straight month, suggesting higher salaries and purchase prices, while average service sector charges climbed for the fifth time in the past six months.

Robert Prior-Wandesforde, Senior Asian Economist at HSBC said, "As with the manufacturing output index, the services equivalent showed an encouraging bounce in December, suggesting that the economy is picking up steam and that the strong July-September GDP release was no flash in the pan."

The business expectations index dropped for a second consecutive month in December, but it remained in positive territory. " It may be that some firms are starting to worry about interest rate hikes from the Reserve Bank." he added.

India's services sector expanded to fifteen month high in December, a report from the Markit Economics and HSBC showed on Wednesday. (Market News Provided by RTTNews)